More than half a century ago, the State of California granted cities broad authority to “eliminate blight” by diverting property tax revenues in designated redevelopment areas. The system grew to a six billion dollar a year system – or “racket” as critics branded it. Since Governor Jerry Brown proposed eliminating all redevelopment agencies statewide last January, cities vigorously rallied to its defense. But ironically, in the end, it was a lawsuit filed by cities and their redevelopment agencies that resulted in a December 29 California Supreme Court decision that spelled the abrupt end of cities’ most powerful economic development tool.
Was redevelopment successfully deployed to revitalize older neighborhoods and downtowns and generate substantial tax revenues for struggling cities to fund vital services as well as provide much-needed affordable housing? Yes, although critics charged that much of this would have happened without local governments incurring billions in debt to underwrite those achievements. Was redevelopment also shamefully abused to demolish people’s homes, subsidize dubious private developments and enrich wealthy suburban enclaves? Yes, although supporters argued those abuses were few and far between and mostly long ago.
Working Artist Ventura project contains living and working studios for 82 artists as well as transitional housing for formerly homeless individuals and families
Ventura has long taken a cautious approach to redevelopment. Unlike some cities that financed expensive and often controversial development deals, the most significant tangible projects of Ventura’s small downtown redevelopment area in recent decades were the Century 10 movie theater, the Downtown parking structure and the WAV affordable housing community.
Great hope was put in the potential of a future redevelopment area to be created to reduce blight on Ventura’s Westside, but those plans have been on hold since the Governor’s announcement and are now moot. An effort ten years ago to leverage the revitalization of the Pacific View Mall into a Midtown redevelopment effort was killed at the ballot box.
Century 10 movie theater and the nearby parking structure were key catalysts in the revitalization of Downtown Ventura
Yet while Ventura’s commitment to redevelopment was measured and modest, it was a key catalyst for the remarkable success of two decades of civic effort to bring life back to our historic Downtown.
Over the past four weeks, city staff has had to scramble to react to the sudden demise of redevelopment – and navigate through a bewildering mind field of political posturing and legal maneuvering going on across California. With billions at stake for California’s 425 redevelopment agencies, “expert” advice has been changing daily. The City of Ventura has millions at stake in real estate assets and loan repayments. So our Community Development department and City Attorney’s office (along with Finance and Technology and the City Manager’s Departments) have been closely monitoring the unfolding situation to provide the City Council with our best advice on actions to take as the clock ticked down.
Crisis management is nobody’s favorite way of doing business. A single month to wind up the work of government agencies that have been operating for over fifty years may be reckless public policy, but last minute efforts to forestall the inevitable were stonewalled in Sacramento. So yesterday we started a new era for economic development in California, one without redevelopment.
As we fitfully recover from the hardest economic downturn since the Great Depression, the big question is what tools will cities have available to use to generate jobs, continue to provide needed tax revenue from business growth and spur investment in declining neighborhoods? Former Mayor Bill Fulton tackled that question in a recent LA Times opinion article. His advice is to focus what comes next on priorities where the private sector falters: “the rehabilitation of so-called brownfields — properties whose development is complicated by industrial or other contamination — and building affordable housing, transit-oriented development and inner-city retail in areas where there are few stores.”
Even that limited agenda is off the table for now. First comes the complicated business of untangling the assets of the agencies that closed down February 1. That task falls to 425 “Oversight Boards” that must be appointed by May, with representatives of counties, cities, schools and special districts. Look for much of the energy that should be going into restoring prosperity diverted to a contentious scramble to control where redevelopment money goes.
It’s little wonder that Brazil recently passed California as the eighth largest economy in the world. We may fall a few more places before our state gets our act together.
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